The R&D Tax Credit Window Closes July 6 – Here’s What to Do
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Tax season is over, but one of the year’s most valuable tax opportunities is still on the table – for a few more weeks. If your business conducted qualifying research or development activity between 2022 and 2024, you may be eligible to amend prior returns and recover real cash refunds. The deadline is July 6, 2026. After that, this window closes permanently.
Virtue CPAs is advising business owners to act now. Many companies that qualify don’t even know this opportunity exists.
What Changed – and Why It Matters
Starting in 2022, a provision under the Tax Cuts and Jobs Act required businesses to amortize R&D expenses over five years instead of deducting them upfront. That increased taxable income and made the credit far less attractive; so many business owners stopped claiming it.
New federal legislation – H.R. 1, the One Big Beautiful Bill Act (OBBBA) – corrects this. Under restored Section 174A, qualifying R&D expenses can again be deducted in the year they’re incurred. Better still, this applies retroactively to tax years 2022, 2023, and 2024.
Who Qualifies
Businesses with average annual gross receipts of $31 million or less can amend prior year returns under the updated rules. In many cases, this results in a direct cash refund – not just a future tax benefit.
You don’t need a laboratory to qualify. The IRS definition of R&D is broader than most people assume. It includes software development, engineering, product design, manufacturing process improvements, and healthcare innovation. If your business invests in improving how things work, you may qualify.
The July 6 Deadline Is Real
This is a statutory deadline – it cannot be extended. For 2022 returns, the statute of limitations may close even sooner depending on when that original return was filed. Waiting is not an option.
What’s Changing for Future Filings
Beyond the immediate refund opportunity, businesses should know that IRS Form 6765 now requires more detailed documentation – especially for companies with over $1.5 million in qualifying research expenses. Going forward, you’ll need to identify individuals involved, describe technical objectives, and maintain project-level records.
The businesses that build these practices now will have a smoother path when the requirements become fully mandatory.
Act Now
Two things need to happen in parallel: find out quickly whether you qualify to amend prior returns before July 6 and start building stronger R&D documentation practices for future filings.
Virtue CPAs works directly with small and midsized businesses across Georgia to evaluate R&D credit eligibility, assess whether prior returns should be amended, and guide clients through the filing process.
Contact Virtue CPAs at (678) 952-9001 or info@virtuecpas.com to schedule a consultation.
